At Least Nine Lawmakers Sold Bank Stocks During Turmoil, FT Says

At least nine members of Congress sold banking stocks before and during the market turmoil in March, the Financial Times reported.

(Bloomberg) — At least nine members of Congress sold banking stocks before and during the market turmoil in March, the Financial Times reported.

Josh Gottheimer, a New Jersey Democrat and member of the financial services committee, disclosed a March 9 sale of shares in Silicon Valley Bank valued at between $1,000 and $15,000, the newspaper said. SVB collapsed the following day, sending US banking stocks plummeting.

Gottheimer also reported sales made on March 6 and March 14 of shares in Charles Schwab Corp. worth a similar amount, the newspaper reported. Representatives for the congressman pointed the FT to a statement from last year in which they said his financial decisions were made at the discretion of a third-party financial adviser.

Earlier this week, the New York Times reported on sales of banking stocks by other members of Congress, including Jared Moskowitz, a Democrat from Florida; Dan Goldman, a New York Democrat; and Utah Republican John Curtis.

The Financial Times also said that Oregon Democrat Earl Blumenauer reported selling shares in First Republic Bank, which received pledges of $30 billion in new deposits from larger lenders as part of a stabilization package. Blumenauer didn’t respond to the FT’s request for comment.

While the report didn’t note whether any impropriety occurred with the share sales, the newspaper cites advocacy groups as arguing that ownership of individual company stock presents a conflict of interest and could erode public confidence. Efforts to introduce legislation limiting congressional ownership or trading in individual securities has stalled in recent years.

More stories like this are available on bloomberg.com